Farmers State Bank Fosston v. Sig

Bank and banking -- deposit -- disposition of proceeds of drafts drawn on commission firm by livestock shipper -- relationship of parties. 1. Where shipper of livestock, under an arrangement with commission firm engaged in the business of selling livestock upon commission for others, drew drafts upon it whenever needed for his business, the proceeds of which were to be credited to his personal bank account and there commingled with his other bank credits, pursuant to an agreement with the commission firm to finance his business and to honor drafts up to a certain limit for that purpose, the relationship between the shipper and the commission firm was that of debtor and creditor, not trustee and beneficiary, and the bank in which the proceeds of the drafts were deposited was not liable to the commission firm for failing to see to it that its depositor applied the funds in accordance with the agreement between him and the commission firm.